Victory Memorial U.S. Trustee withdraws exclusivity extension objection

By Caroline Salls

Pittsburgh, Aug. 1 - Victory Memorial Hospital's U.S. Trustee withdrew her objection to the proposed extension to the company's exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

U.S. Trustee Diana G. Adams said she has consented of an extension of the hospital's exclusive plan-filing period through Sept. 30.

Adams said in a letter to judge Carla E. Craig that she agreed to withdraw the objection after speaking with counsel for Victory Memorial and after reviewing a hospital grant application.

According to the objection, the hospital's monthly operating reports already show post-bankruptcy losses of $1.23 million per month, and an exclusivity extension could compound those losses.

Adams' objection also said the exclusivity extension motion should be denied because the hospital is unable to pay its debts as they become due without additional borrowing.

The Brooklyn, N.Y.-based hospital filed for bankruptcy on Nov. 15, 2006. Victory Memorial's Chapter 11 case number is 06-44387.

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